At House hearing, both parties dubious about Comcast merger

Today, the Republican-controlled House Judiciary Committee held a hearing entitled “Competition in the Video and Broadband Markets: the Proposed Merger of Comcast and Time Warner Cable.”

Competition was indeed the issue, and one which seemed to jolt both Democrats and Republicans.

Ranking Democrat John Conyers (D-MI) noted that “Comcast is a cable company and a programmer [which] raises a double concern with me.” Conyers said the Justice Department antitrust division had its work cut out, and “I don’t know if it’s resolvable to be honest with you, at first blush.”

But, so massive is the proposed merger, that it also had pro-business Republicans raising doubts. Blake Farenthold (R-TX) said he didn’t “want to sound hostile to this merger, because I really think that government needs to stay as much out of the business world as possible.” Nevertheless, “I have had some concerns raised by constituents”

Specifically, Farenthold’s Latino constituents are extremely concerned. As The Hill noted, “After the merger, Comcast would be the top player in 37 of the top 40 markets in the country and serve 91 percent of Hispanic households in the country.”

For their part, Comcast and Time Warner gave the usual soothing predictions. Time Warner Cable CEO Robert Marcus claimed that, “Greater scale will yield more robust competition and significant benefits for consumers and businesses.” And Comcast’s ever-ebullient VP David Cohen declared that “The ultimate beneficiary of this advanced competition and greater investment is the American consumers.”

But, the industry, too, had knives out for Comcast and Time Warner. Witness Dave Schaeffer, chief executive of Cogent Communication, said flatly that “This merger is bad news for the cable industry,” Schaeffer claimed that “Comcast’s strategy is to get everyone to pay them,” noting their ownership of NBC, cable channels and the already largest subscriber base in the country.

Can the merger proceed with this kind of opposition? It’s too early to tell. Comcast is exceedingly well-funded and experienced in influencing all levels of government, and seems to have no reason to give up yet. Time will tell.

Competition in the Video and Broadband Markets: the Proposed Merger of Comcast and Time Warner Cable (Hearing statements, House Judiciary Committee, May 8, 2014)

House raises concerns in Comcast scrutiny (The Hill, May 8, 2014)

Industry Executives Say Cable Merger Would Hinder Choice (NY Times, May 8, 2014)